LOCAL SCHOOL ACCOUNTING OVERVIEW

Transcription

1 LOCAL SCHOOL ACCOUNTING OVERVIEW L O C A L S C H O O L F I N A N C I A L M A N A G E M E N T T R A I N I N G P R O G R A M M A R C H 5, L O I S S T E P H E N S O N M O U N T A I N B R O O K C I T Y S C H O O L S

2 OVERVIEW: Activity Accounts (Public and Non-Public) Monthly Procedures Budgeting Fiscal Year-End Compliance and Accountability

3 ACTIVITY ACCOUNTS Activity numbers are used in Local School Accounting to separate the specific activities and funding sources within the school s financial books.

4 WHAT S IN A NAME??? WHERE WILL THAT ACTIVITY NUMBER SORT ON REPORTS?

5 ACTIVITY ACCOUNTS Will the Activity contain Public or Non-Public Funds: Public Fund 12 Source of Funds 7101 Non-Public Fund 32 Source of Funds 7501

6 ACTIVITY ACCOUNTS New Activities How are funds collected? During school, on campus After school, off campus Types of expenditures

7 ACTIVITY ACCOUNTS Public Funds (12) Generated school wide Generally held during school and on school campus Funds raised through state, local, or federal taxation Restricted use of funds Used for all students Controlled by the principal

8 ACTIVITY ACCOUNTS Non-Public Funds (32) Funds raised for a particular group Organization, parent group or committee determines how funds are to be expended. May be held after school and/or off school campus Controlled by sponsor/organization Self-imposed fees, not state-required

9 4 questions to Ask to Help Determine Proper Coding of Expenditures What is the activity being performed? (Function Code) What service or item will be obtained as a result of the expenditure? (Object Code) Where is the money coming from to pay for this expenditure? (Source of Funds) What group of people will benefit from this expenditure? (Program Code)

10 MONTHLY PROCEDURES Review: Trial Balance Verification Report Principal s Report Transfers In/Out Month-To-Date Check Register Bank Statement Reconciliation

11 MONTHLY PROCEDURES TRIAL BALANCE Class 4 (revenues) = Type C (credit) accounts Class 5 (expenditures) = Type D (debit) accounts

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13 Change Cash Trial Balance(Class/Function )

14 MONTHLY PROCEDURES Verification Report

15 VERIFICATION REPORT Open Purchase Orders Out of Balance Usually caused by not changing the posting date when a PO is changed or voided. Encumbrances out of balance with open purchase orders. The majority of the time this out of balance situation can be resolved by rebuilding the encumbrance file. The rebuild feature is located on the General Ledger Menu under General Ledger Setup.

16 VERIFICATION REPORT Transfer-In and Transfer-Out Out of Balance Internal Transfers between Activities Out of Balance Compare General Ledger Reports for Internal Transfer In (function code 9210) and Internal Transfer Out (object Code 920) OR Run Verification Report with Account Detail Review Transfer In-Out Section

17 MONTHLY PROCEDURES PRINCIPAL S REPORT Activities Reflect A Positive Balance

18 MONTHLY PROCEDURES Ensure funds transferred to the Central Office are posted correctly. These are most easily checked by running an Invoices By Vendor report for only the month you are balancing.

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20 MONTHLY PROCEDURES Month-To-Date Check Register Make sure all checks written for the month are accounted for in the system (be especially mindful of offline checks).

21 TWO WAYS TO CHECK FOR MISSING CHECKS Any missing checks on this report must be researched Generate a Month-To- Date Check Register Use the search function to find the two astericks that denote a break in check sequence.

22 MONTHLY PROCEDURES Bank Statement Reconciliation All bank accounts should be reconciled monthly. Monitor Other Reconcilable Items Monitor Stale Dated Checks

23 BUDGETING PROCESS A BUDGET is a formal estimate of revenues and expenditures for a given period of time.

24 BUDGETING PROCESS Meet with Principal to discuss initial budget needs Plan meetings to discuss individual activity budgets for needs/changes/requests with appropriate departments/programs Help them understand where they spend their dollars Help them understand what they can afford

25 BUDGETING PROCESS Review Review Review Compare previous year Define increases/decreases Review Again

26 BUDGETING PROCESS Develop a budget review and management system Print reports and review with activity managers Make necessary amendments as needed Review for any discrepancies and necessary journal entries Internal transfers in and out must balance Keep a working copy of the current budget within easy reach. Making notes during the school year will aid with budget amendments and next year budget preparation.

27 COMPLIANCE ISSUES Main Goal as a School Bookkeeper? We don t want to be in either one of these places. Either as a school or an individual.

28 COMPLIANCE ISSUES State Department regulations and guidelines for handling public funds. Ethics Commission regulations and guidelines that apply to employees. Auditor/Public Examiner regulations and guidelines. School System/Central Office policies and procedures.

29 COMPLIANCE ISSUES Capital Leases/Rental Agreements/Contracts Know who has the authority to sign a lease/rental agreement and/or long-term contract for your school system.

30 COMPLIANCE ISSUES Contracts/Purchased Services (1099 Vendors) If contracting a service from an individual or business, the contract can be used in lieu of a purchase order and serves as approval for the expenditure. Purchase Orders, however, remain your best tool for monitoring spending thru encumbrances. System guidelines vary regarding whether or not the Principal has the authority to contract a service with an individual/business for work to be performed. Board employees who perform a type of service for the school must be paid through the regular payroll process.

31 W-9 S FOR VENDORS It is a good practice to obtain a W-9 from all vendors. Lawyers and medical service providers must be issued a 1099 even if they are incorporated this is Federal law.

32 ACCOUNTABILITY As stewards of public funds, we are accountable to not only those we must remain in compliance with, but also the students, parents and community. Perception do they see an elephant, where there s only an ant?

33 ACCOUNTABILITY School Store - Items should be inventoried and accounted for on a periodic basis to ensure adequate accountability. Inventory could be weekly, monthly, quarterly, or at the beginning and end of a selling season, depending on volume and your system requirements.

34 ACCOUNTABILITY Field Trips Field Trips should not make money, nor should they operate at a deficit. Field trips should be reviewed during and after the process. Fundraisers Show revenue and expenses for fundraisers with beginning and ending inventory of items sold and account for remaining items. Ticket Sales Verify accuracy of ticket sales and reconcile differences.

35 FISCAL YEAR END Bookkeeper is responsible for preparing the financial books for year-end close. Remember to post: Receivables Payables Investment interest Change cash re-deposit

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37 QUESTIONS

38 BONUS TIME 3 TIPS YOU MAY NOT KNOW

39 SAVING REPORT CRITERIA Set up and Run Report

40 Name and save the report

41 Recalling a saved report

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44 EXPORTING REPORTS TO EXCEL ENTER SELECTION CRITERIA AND GENERATE REPORT

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47 FROM EXCEL PROGRAM OPEN SAVED FILE

48 NEW GRID EXPORT TO EXCEL

49 EXPORTING REPORTS AS PDF TO ATTACH TO

50 SUGGEST SAVING THIS TO A DISK USED SOLELY FOR THE PURPOSE OF SAVINGS FILES TO ATTACH TO S. THIS KEEPS YOU FROM HAVING TO CLEAN THEM OFF OF YOUR HARD DRIVE. Now, go to your and attach this file just like you would any other attachment.

51 Or, you can find the file in Adobe, right click on the file name, select Send to then Mail Recipient. The file will automatically be attached to an . All you have to do is enter the address you want it sent to.